because the germans can't afford the euro to break out because that would. they losses because they would lose competitiveness but then they look at where they markets up sixty percent of german exports go to europe about forty percent goes within the euro zone and they two largest markets of spain and italy is two markets are in recession so they can't export their way out of that most people think german export to places like china and india and they do but there are a small component china for instance is only five percent of the export lie cannot of its own and work in that sense but the second thing is europe's attempt to devalue the euro is not going to necessarily be a one sided game because i can see the united states basically using quantitative easing or other tools to try to competitively devalued so it can't be one sided so i don't think germany will get out of this with these sort of get out of jail card which is the export card and we also know that growth in places like brazil even india in china is slowing and so it is not the panacea to the

reportedly will unleash aggressive monetary policy in the face of a worsening euro zone debt storm so central banks are threatening to turn on the spigots. thanks. that's what they aim to do but will they drown us all in liquidity pumping an extra liter of liquidity into a container losing gallons by the day does nothing to change the deflationary dynamic we'll discuss plus it's friday we'll show you the incredibly creative way one of our viewers came up with to distinguish between a head and a proprietary trade once and for all since jamie diamond says he can't that more of your feedback let's get to today's capital account. all right let's quickly recap what we're looking at this weekend with greek elections now you could say that the political parties in greece have fallen into two categories those in favor of the two hundred forty billion euro bailout loan of course to extreme austerity measures and those against it now here are the major players we're looking at sunday's series the party led by alexis tsipras this is one of their rallies there he is ok he's running on a staunch a

greeks are warned over key election the telegraph warned greek election catastrophic vote to leave euro would cause bank run. well it was like a lehman brothers moment but let's remember what the lehmann brothers moment was all about the stock was down sharply and then a false rumor was started and attracted naked short sells that is this a counterfeit stock sales of lehman brothers stock flashforward to greece greece also being attacked with naked short sells in credit default swaps destroying their economy mainstream media outlets floating rumors around the world that they're about to go belly up all in an attempt to force the country to dischord its assets to the global speculators for pennies on the dollar the fact is they're always in these situations telling the peasants to do one thing well the elites are doing something else because there was another headline in the telegraph that went along with this they offered another headline about a previous riot some bank runs and sovereign debt collapse debt crisis the cost of default rioting sieges and death in late december two thousan

parties in greece have fallen into two categories those in favor of the two hundred forty billion euro bailout loan of course to extreme austerity measures and those against it now here are the major players were looking at sunday's series the party led by alexis tsipras this is one of their rallies there he is ok he's running on a staunch anti austerity platform he stated publicly that he believes greece will not be pushed out of the euro even if they break with the austerity measures tied to the bailout on the other side we have new democracy leader antonio is some of us now he's campaigned on a platform to keep greece in the euro zone but he's been walking a tightrope of promising fiscal adjustments to ease the pain associated with the memorandum now on june first that is the last date opinion polls were allowed to be publicized new democracy lead with twenty two point seven percent syriza had twenty two percent and eleven point two percent but i should mention there is a two point eight percent margin of error so it is really close between new democracy and syria now if there is no

zone what they're going to do is they're going to exit the euro zone. go back to their or. point their or their currency for instance is trying to will go back to the set up they will then convert all their gas from euro's into cosette us and then after they have done that conversion they will devalue the septa by twenty thirty percent maybe as high as forty percent at the end of the day the markets will punish that they said they will in the end it be divided by maybe sixty percent but by doing this spain will be able to pay off its debts but of course the bondholders will be left you know holding the empty bag because they'll be paid back in one current's this seems recently likely that will happen in the short term short term the next six months i cannot tell you when it will happen but it will come out and because the euro rats are not coming up with any kind of solution to fix the problem that we have and you thousand really really confident about this and zollo youth down like maybe you've seen this before maybe you have a glimpse into what that h

zone if the euro zone cuts off the e.c.b. and i am cut off funding to graze there they're not really going to have a choice there they're going to default they're not going to have a source of funds so you know the question is does he really believe that or not i think it's about sixty sixty five percent. of the radical left wins this election if he does essentially you're betting that spain's going to leave the euro zone within the next seventeen days so lauren i don't think that's going to happen but i do think it's inevitable that we do see both the spending and a greggs and both are going to happen it's the only way these these economies have any chance of recovering austerity is not going to do it they they they still need to implement. genuine reforms neither country has done that yet so it's a disaster case scenario here and the we're looking at right now ok and a grabs it is something that that we've been talking about the media has been talking about obviously it's got a lot of attention and so we kind of know you kn

fifteen thousand euros in germany or even up to seventy five thousand euros in switzerland so obviously there are much higher than the ones which have been just fixed now. and also we. just. saw the police war. well often if you look at how the student protests were dispersed in. some of the camps in the united states often. much more aggressively than what we see. people just rallies here in russia. thanks very much indeed. now twenty one minutes nearly past the hour here in moscow let's have a look at some other international news in brief. a bomb attack on a bus carrying government staff has killed eighteen and wounded dozens in northwest pakistan the vehicle was near the city of peshawar when the bomb hidden inside it exploded the blast was the act of militancy in the region despite a significant drop in violence over the past years no group has yet said it's behind the attack. clearing taliban fighters of fled from a jail in northern afghanistan officials say they have recaptured sixteen of them with the others still at large in detonating the explosives which destroyed guards then

the euro zone so.bviously if greece does leave the eurozone and then sort of exits lots of some of these commitments even commitments potentially extant commitments to free capital markets and free capital flows or bets off and then things could change i think within the eurozone as a set up right now it will be difficult to introduce it but remember that behind sort of closed doors this is practically already happening happening you know if you look at what the e.c.b. gave as we know what new euro is to the banking system and you know many of these banks turn around use that money to buy government bonds and to some degree they're being encouraged by regulators to do so sometimes they do this to increase the tier one capital to sort out their balance sheets but it's very clear that these banks are being asked to buy their own domestic government bond market so one of the ideas of monetary union obviously to have a free market of capital allow people to put the money where they like to put it i think w

european football with the euro. well that's the way it looks at the moment. the news team with. discuss the future of the european union. for the euro with the greek economy in tatters and spain on the financial future of the monetary union looks anything but bright world leaders are calling for quick and decisive action to avoid. the european central bank has come out and said the fate of the currency.

the wait is almost over for millions of football fans across europe as the euro twenty twelve tournament kicks off in warsaw however the championship goes to jointly by poland and ukraine has attracted criticism for both human rights violations as well as claims of racism most recently from the dutch national team party's partridge. the issue as you say is not really about sports and football it's about politics because the u.k. government have joined the french government in signing that they will boycott the tournament during the group stages this is due to the alleged mistreatment of the imprisoned former prime minister yulia timoshenko. both the u.k. government as a say on the back of the french government and other high profile e.u. withdrawals and threatened withdrawals over the alleged mistreatment the situation here is not really just about political controversies that seem to be dogging this tournament but also about social issues and as you say racism has become a particular issue a dutch team based not in ukraine they're braced in krakow in poland just before they come into pl

of course, there are countries out of the euro. but if the euro moves -- at 12: 12:00, the clock moves in the same direction. they are economically linked to europe. and the euro is a stability moment even in difficulties. the dollar was stability even when california has no money. when new york. but the dollar was stability even in difficulties. >> how can you say that given how the euro is moving? i mean, the euro is tumbling. it's become the most -- the strongest force for instability. wait a minute. in our lives. i don't want any brit to tell me about what the euro should do. otherwise you would have been in the euro instead of britain sitting there gloating. thank god we never got into this. that's what i wanted to say. >> let's not forget -- >> because it's important what danny and peter are saying. they're saying europe will do whatever it takes to keep greece in europe regardless of a new government that will reject the austerity measures. will germany sign on to that? >> i'll do it under the following conditions. if you te

there has been no euro crash. on the housing estates of peripheral europe, things are bleak. >> six months after a greek exit, we would still be in a period of economic and financial uncertainty and weakness. our expectation is that -- is that the gdp would drop 5%. >> if all that looks bleak, it is possibly the best you can hope for if gree exitc. e-- -- greece exits. the spanish economy is shrinking. its sovereign debt is already verging on un manageable. -- unmanagabel. le./ >> one has to fear that the disruption of economic and financial -- the actual exit procs -- would affect the euro. until now, german assistance -- insistence on a greek austerity agreement has been just talk. many see that as changing the debate over austerity versus growth. >> the approach of the washington consensus and david cameron is simply wrong. greece is the country with nothing to lose. they say, no, we are not accepting this. it could be quite titanic for how the whole all-star to project is seen. >> economists find it hard to mo

russia should join the euro. while i think i would have a discussion in russia to thrash better relationships with the european union and then i heard a loud crash joining me to go there i don't think anybody wants to join me at all that you have no option like i don't examine let clearly if. you will get away i'm going to jump and there are several countries that actually are now still the wanting to go on the euro one of them is poland and i thought today not today exactly what we need to fix the euro for us but how do you fix it so i mean only to i think we've had about this topic how do you fix it jacob has the idea but i don't know if it's politically feasible so i think we will start from another place i think we will start from the banking sector live start with a roadmap towards a banking union that starts with the laying out how are we going to get central banking union i keep hearing idea what is that me so that a banking union means that you have a central supervision who's going to supervise it so who

has the european currency the euro already had its moment. right well i don't think so not yet we've had some crises and then a policy response i think that's what people mean by lehman moment a moment in which you stare over the abyss and then after that with his name on the team emergency meetings and everyone keeps staring over at the abyss where we had the l.t.r. oh and some people thought that that solve the crisis but basically i think the problem is the euro project is half baked i don't mean that in a pejorative sense but i'm going to have money i'm going to be in a positive sense in any way you have a monetary union without a fiscal union and until you have a lender of last resort as a backstop to the monetary union i think that with the weak banks and the weak saw friends that we have particularly in the south of europe they will start trading as credit worse rather than sovereign risk that means that the yields will go up and it will be impossible for them to finance in the market and since we have two very big countries there spai

irish put to paper some everyday purchases in the town of clueless arlen's joined the euro from the get go in two thousand and two but crisis hit business owners here have revived their old currency to try and desperately claw some cash back into the community if you bring in pointed to was twenty point spend or fifty point whatever you spend we would give you the change of tone is tone voters which you can then go and spend cross the road and supervisor you are in the crib or go for a drink up the town it's it's a great scheme for the time it means all the money remains within the town as for the euro here it's been reduced to a novelty item printed on tissues and toilet paper and customers come from miles around to spend their puts often stopping by for a haircut while they're here oh yeah definitely a lot of people come from from about foss especially our own from people from no phantom zone us have an obligation mountain. out there's an estimated two hundred eighty five million tucked away in draws and under mattresses forgotten about ok to souvenirs when i joined the euro a decade

a big day for european football as the euro two thousand and twelve kicks off but plays being dealt a blow with boycotts over human rights abuses in claims of racism. as experts predict spain could ask for a bailout as soon as the savings it is desperately to scramble to save the euro one town looks to its last currency for salvation. around the clock around the world international news and comment live from moscow the un and its envoy to syria looking for ways to put additional pressure on damascus to prevent the country from sliding into a full scale civil war and also urge the rebel forces to lay down their arms the opposition meanwhile claim assad's troops are shelled a rebel controlled area in the city of homs clashes between troops and opposition fighters have been reported in damascus this is teams of u.n. observers a visiting the site of the latest massacre near the city of hama to try to establish who is to blame for the deaths of up to one hundred people. are reports now from syria. we've been hearing two different takes from the opposition and from the syrian government the

euro dollar, we're around 1.25, 1.26 mark. euro dollar is slightly lower, 125.50. as far as stocks are concerned right now, we were down about a percent. ebex is flat, interesting enough. we are still called just above the line at the moment, a pretty flat start for u.s. markets indicated by the futures. >>> our next guest says the it's reminiscent of the action that took place during the height of the u.s. financial crisis in 2008. we'll be joined from canada with david rosenberg, next. optionsxpress, where you can trade your favorite products, all in one account. keep watch on the markets. or use our exclusive tools to help find ideas. it's powerful, easy-to-use technology for trading stocks, options, and futures. keep trading whether you're at home, in the office, or on the go. optionsxpress, the broker smart traders deserve. open an account today at optionsxpress.com. is this >>> this is "worldwide exchange," the headlines from around the globe. stocks head lower, spain enters the danger zone, yields top 7%. an area that has forced other into accepting bailouts

a big day for european football as the euro twenty twelve kicks off of play is being dealt a blow with a boy called server human rights abuses and claims of racism. eurozone on a knife edge experts predict strain could ask for a bailout as soon as this evening but is desperately to scramble to save the euro one town next to its last currency salvation. around the clock around the world international news and comment live from moscow the un and its envoy to syria are looking for ways to put additional pressure on damascus to prevent the country from sliding into a full scale civil war and also words the rebel forces to lay down their arms clashes between troops and rebel fighters as well as rallies against the ongoing violence have taken place across the country you know position claim a sad truth of shelled a rebel controlled area in the city of homs this is teams of un observers are visiting the site of the latest massacre near the city of hama to try and establish who is to blame for the deaths of up to one hundred people bodies were a function of reports now from syria. when hearing

when you when we look at the euro crisis today there's been much thought put into what could go wrong because it seems to me that we have nineteen emergency meetings nineteen. and everybody keeps looking over the cliff and we keep hearing a solution is in sight and then we have another emergency meeting when told it went so wrong. i think there are. two factors that have to play that one is political and the other one is economic the political one is that i think we have to keep in mind that democracy is a very slow process by stuff a nation and european union is is maybe to a democratic force on good which plays adversely most people would say it's the world versus now i don't think so i still don't think so at least during the outbreak of the crisis that was definitely the case so meeting at the meeting as you said decisions that the markets were expecting were not coming up who said one word money for the markets is it working for the people like this one of the things i always hear with the markets thing but when i say people i'm not a i'm not a great fan of markets that people un

and the euro zone i'm not asking for those sort front for that agenda to be implemented because they know he's be implemented but now he becomes compulsory not fund study so that's a different some recent light people around the he's that because they see these that they know the facts so yes certainly the banks have to be bailed out we need our banking system intact of course but people because the banks are actually this is the root cause of these crisis and the case of this face because of the property bubble the cheap loans and all that so people would be saying why bailout the banks bailout us we also need it and that is one thing why they are angry russian police have searched the homes of several prominent opposition figures the raids come as part of an ongoing probe into violence of last month's mass anti-government rallies seven people have already been detained in connection with those clashes the organizers have also been summoned for questioning prior to another protest rally planned for tuesday in central moscow ortiz tom barton reports. police have been searching a numb

i would say the euro by next year and i would say there is a probability that greece exit the euro zone thinking about surely going to be now into a new government is going to try to form. an explanation becoming sustainable the pain will exit and i would say that it could be good for them as well as bags it is all of them. and means of them there are massive differentiation on barack's very common. growth story ballance of course they'll be damaged the banks damage their savings or people in the banks and that's why they need more funding to make sure that it's not disorderly meltdown and the contagion of the rest of the eurozone is smaller so it is than they can see it that way and it's fine so he's orderly probably. it's a manageable look at the bags and you can see the full interview with no roubini all monday here on altie let's check exchange rates the euro is losing against the dollar on the euro zone news on the russian ruble is once again retreating against both major currencies russian markets are following the world situation crude is heading for its longest losing streak whi

oh economists fear the hundred billion euro loan that the euro zone's agreed to give spain might not be enough by lending the cash to spain where one in four people are out of work ministers want to reassure investors and erect a crisis fire wall spanish banks were left with billions of euros of bad loans after the property bubble burst sending the country into a deep recession are two spoke to the man who is often called the euro's founding father next hour former european commission president romano prodi says the ears troubles began with lack of control. when the euro was go or it was clear. that we needed political leaders come on fiscal policy are you guys in the program . and now with tory to comb through the behavior of bestie in two thousand and three i rise with the program again and france germany and italy they told that this was a game they support you need then i ask you a truce they recreate the cocoa troll by the eurostar and they said no and so the greek would cheat everything through kelly for their budget these remarks towards the english but nobody likes california

when the euro was gore it was clear. that we needed political leaks called one fiscal policy are you guys with the program. and now toward peace.

and eight they could have the ability they can do that to they have a central bank they can create euro zone and they can do what the fed did here they can lower the interest rates and even guarantee a certain interest rate the spanish italian bonds and that would put an end to this threat of a severe crisis so do you think they euro zone look hard sad that the highest risk is yet another crisis in europe do you think that's coming that's exactly right there aren't any big risks to the global economy other than what the europeans are doing to themselves and that's really what it is it's a self-inflicted recession that they're in right now if the recession continues the deeper and more importantly if these governments do what they're being instructed to do by the european authorities that would be the european central bank the european commission and the i.m.f. if they actually tighten their budgets further cut spending further they're going to go deeper into recession and then we don't know what happens that's what christine lagarde is worried about in spain which is the big trouble spo

reports suggest spain will need at least forty billion euros to boost its crisis hit banks well as our team reports from ireland another crippled country some locals are going back to their past with the currency of lead euro two thousand and twelve football tournament kicks off laden with scandal as several european governments boycott the championships amid human rights and the race issue. nine am in moscow i match reza good to have you with us here on r t our top story the u.n. secretary general along with the world bodies envoy to syria want more international pressure on damascus to bring about compliance with the u.n. peace plan but kofi annan also urged the increasingly aggressive rebel forces to lay down their arms artie's marina porton has more. after hours of closed door consultations members of the security council and the secretary-general ban ki moon have come out first mr obama ki-moon saying that kofi annan says six point peace plan to stop the violence in syria remains at the center of the international community's efforts clearly nobody has calling this plan a failure

the euro zone officials have helped texas discussion in case greece abandons the euro. today the world bank warned fears have reduced investors' risk tolerance. joining me are joe nocera of the "new york times," gillian tett of the "the financial times." i am pleased to have them here. i want this to be a kind of primmer. you just said to me a very interesting thing. you know, the idea, if there was a commitment to save the world, what would they be doing? so where are we and what would they be doing? >> it's a very interesting question to ask, because the save the world tag line emerged during the asian financial crisis, and it was people like alan greenspan, larry srnlings people like that. back then there was a sense that american fors and american power could not only offer sensible solution but actually coral everyone to sulactually implement them and it was a pretty effective way of dealing with the asian financial crisis in many ways. today, if you imagined that commitment to save the world in america, it is not clear that america, or indeed, anybody else, could

as it is it's too weak so give us a stronger gold backed euro they should have had a gold backed euro from the beginning it would have been a true currency union here this is then a short change con so dermody and whoever the powers that be behind the e.c.b. i have used the short changed con and now they know greece is down portugal is down spain is that italy which has two and a half thousand tons of gold is next and this redemption bond is going to be something for them well once a country out there should jump the gun and offer a gold backed currency ahead of all the shenanigans and take the wind out of germany sale and have the best performing currency in the world or a silver backed currency like mexico or athens as we try to do when he goes to lend us price when we are just in athens pushing this so over back her and see it as a way to jump the gun on germany and have the best performing currency ahead of germany hopefully the greeks will wake up to this reality exactly be prepared for the short change con absolutely thanks so much for being on the cards a report thank you max d

euro twenty twelve with poland and ukraine and another political controversy has hit the event before it even starts the french sports minister has announced that the french government will be boycotting the event in protest over the alleged mistreatment of former ukrainian prime minister yulia timoshenko is being held in the ukrainian city of kharkiv while this follows on the back of racism issues which have also arisen in england particularly following on from the broadcast of the b.b.c. panorama programme stadiums of hate which went out last week in court and cause shock waves throughout england as it highlighted racism and anti semitic views amongst a club level in polish and ukrainian teams this also is in line with manchester city mario balotelli he said that he is also witnessed racist issues in italy and across europe and he said that should he be the victim of particular chanting or abuse while he's on the pitch while he's here at the euros that he would walk off but this is prompted you wait for president michel platini to say that this isn't an issue for the players to reso

irish town go back to their old currency to save businesses from collapse as more people fear the euro is only heading down the drain that's amid reports spain will need at least forty billion euros in bailout money to boost its crisis hit banks. the euro twenty twelve football tournament kicks off laden was a scandal as several european governments boycott the championships they say they are concerned about poor human rights records and racist rumination at club level imposed poland and ukraine and will not attend the games in protest. while next in r.t. if you know what alan he is gas discuss the future for european monetary union as greece and spain saying deeper into the debt crisis. if you. still. owe him a welcome to crossfire computor all about crunch time for the euro with the greek economy in tatters and spain on the financial brain the future of the monetary union looks anything but bright world leaders are calling for quick and decisive action to avoid a doomsday scenario while the european central bank has come out and said the fate of the currency is not in its hands. and

euro probably the each part if not below par that is you know ninety cents american will buy you a euro or something along those lines now when this happens there's going to be a tremendous capital flight a flight to safety from european assets to dollar denominated us course the most common dominant dollar denominated assets is of course u.s. treasury bonds so what is going to happen with this huge demand for treasuries as europeans flee the euro in order to safeguard their capital of the evils of the dollar is going to flatten even for the yield of the u.s. for a few while he's going to flatten even more which is going to drive down the cost of borrowing which will be an incentive for the united states federal government to continue to borrow ok so at this point in time if we have essentially the u.s. government borrow one dollar for every one dollar of income tax that it brings in you know that if there's a big collapse in europe and under the under the the keynesian notion that you have to spend your way out of any problem the government might well start to increase its deficit spen

the city has invested some 680 million euros on preparations. wait is over and the city and its guests do not want to miss any of th action. >> the biggest question, of course, is who is going to win the tournament. >> some are putting their face and the animal kingdom. who can forget the octopus that spend a lot of time predicting the winner of the world cup, only to die. >> often, he was right. now even elephants are getting in on this. >> predicting soccer games is a wild business. yvonne that the headlines last year as the cow on the run, evading capture in bavaria for 100 days. now she has gone from fugitive to fortune teller. her prediction, portugal all the way. the elephant sees a different future. she booted the ball straight into the portuguese built, many victory for germany on saturday. >> i faced a lot of elephants in my playing days, but i have never seen one as a technically perfect as nellie. it is too bad she cannot play with the men. >> over in kiev, meet the psychic pig. picking winners is a pressured job, especially for one o